Bitcoin (BTC) price has recovered above the $20,724 support level after the recent slump. On July 27, the price of the largest cryptocurrency rose to a high of $23,440.
The bulls are retesting resistance at $23,377 before breaking above resistance at $24,000. Since July 19, the uptrend has been slowed down by the overriding resistance of $24,000.
Further upward price action is doubtful as the market has reached the overbought zone. In the last price action, BTC price was bounced at $24,276 as it fell back to the low of $20,724. If Bitcoin breaks above the overriding resistance today, it will be forced to move within a range for a few days. The cryptocurrency will fluctuate between $20,724 and $24,000. However, if the bears break below the $20,000 support, the downtrend will resume and Bitcoin will initially fall to the low of $18,905.
Bitcoin indicator reading
Bitcoin price is at level 57 of the Relative Strength Index of period 14, which indicates that the cryptocurrency is in the bullish trend zone and could rise to the previous highs. The cryptocurrency is above the 70% area of the daily stochastic. This indicates that the market is in a bullish momentum. The 21-day line SMA and the 50-day line SMA are pointing south, indicating a downtrend.
Key Resistance Zones: $30,000, $35,000, $40,000
Key Support Zones: $25,000, $20,000, $15,000
What is the next direction for BTC?
Bitcoin is in an uptrend and continues to test the overriding resistance of $24,000. The largest cryptocurrency will resume its upward momentum if buyers keep the price above $24,000 and the bullish momentum is maintained. The cryptocurrency will be bound to a trading range if it fails to overcome the overriding resistance.
Disclaimer. This analysis and forecast are the personal opinions of the author and are not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by CoinIdol. Readers should do their own research before investing funds.
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